There has been a very significant amount of bullish comment on silver in the media and by analysts of late and at last it seems to be paying dividends for silver investors. Yesterday silver may well have made the breakthrough above $20 an ounce the market had been looking for - and all this when gold had weakened meaning that the gold:silver ratio (GSR) may have started falling back towards more average levels which would be very positive for silver in the short to medium term.

Many analysts make the point that the historic GSR has been nearer 15 than the current 62.2 (gold at $1272, silver at $20.45), but then the role of silver has changed dramatically since those days from being a true monetary metal to one which is driven more by industrial demand with precious metals overtones. The only time in recent years when the ratio got down to this kind of level was in 1980 when the Hunt Brothers were trying to corner the silver market and the metal reached a heady $50 an ounce. Given the fate of the Hunt Brothers this is a level unlikely to be repeated in the foreseeable future, but investors and analysts feel that the recent year average in the GSR of around 55 may be attainable again - and at the current gold price this would put silver at around $22-23 at the current gold price, which is a much more realistic target. And, of course, if the gold price does continue to move upwards as many are still predicting, then silver could be dragged up to even higher levels.